One thing that you should be able to do is carry forward you losses indefinitely to offset you taxable gains. You will also be able to write off a 3K loss each year against ordinary income . If you do not have gains to offset with the losses, you carry them forward to the following year. It is to your advantage to offset short term losses against short term gains and long term losses against long term gains for maximum savings.
As indicated in another reply, Turbo Tax makes you separate your K-1 forms into separate K-1s if there are more than one input in boxes 1, 2 or 3. that will produce a Turbo Tax error message. This is the first year that Turbo Tax asks a question in the interview about this, but it would be nice if Turbo Tax could fix this error and allow an input as received on the K-1 forms from the PTPs.
Also, if you have any 20Z entry, find my reply to several others concerning how to handle this issue so as to avoid getting a Turbo Tax error message and allow you to complete your taxes. The entries required will be on a separate schedule A or supplemental information along with your K-1 from the PTP.
The main reason why PTP's issue a K-1 is that they pass along the tax responsibility to the Limited Partners, so that they do not have to pay corporate taxes as a corporation. In return, they must pay out 90% of their profits to investors.to qualify as a PTC (BDC, REIT or otherwise) . So when you see high yield, be aware that you will be paying the taxes which will either true return. If it is a ruturn of capital, it will lower your cost basis. If it also lowers the NAV of your holding, it is actually diluting your investment, if however the NAV is increasing than you investment is increasing in value.
Hopefully this insight is somewhat helpful to gain a better understanding of PTPs
Hope this is somewhat helpful.
